Then, slowly begine to increase the amount each month. And if it is your child's education you're saving for, you'll need to be a little wiser and start a little bigger than that now: Alwayas assume that you will need to save between $115 and $284 a month. This estimate starts when your baby is born. Past expenditures may serve as guide to but not to justify for future outlays. Traditional budgeting versus zero base budgeting This is actually a new technique of planning and decision-making. It ultimately reverses the working process of traditional budgeting. In making a zero base budget, you do not need to refer to the previous level of expenditure as basis of a new one. This annual budget is mostly projected on a quarterly basis, with each quarter detailed in months and/or weeks. It is also possible to do budgets good for two to five years. Anything beyond five years generally is impractical because of the possible change in economy in that time span. There are many benefits of business budgeting. Here is a simple spending system that can greatly help your personal finance budgeting: - Create a personal finance budget that you can use - Save 10% of your income - Always know exactly how much you have left to spend - Instantly know the impact of every spending decision - Track all your purchases - Pay your bills on time - Effectively manage credit card spending Many people create a financial budget based on other people financial worksheets. Budgeting money also means saving some money aside for an emergency expense. If a member of the family might get sick or the money you expected to receive is delayed, you will have an emergency fall back plan. Resist the temptation to splurge. One problem that stops you from budgeting money is the tendency to buy on impulse. Non-financial people involved in the procedure normally needs some financial training to help maximize their effectiveness in budgeting. After some period of time, participants become more comfortable with the process and work hard to improve the benefits of having one. There are different stages of the budgeting process: - plan - execute - review - report the ogranization's financing, investing and operating activities The planning stage Budgeting pertains especially to the planning stage.